Donated Resources

Appeal Brief

The Applicant has not provided documentation to support the claimed costs for donated labor and supplies or materials. Therefore, the appeal is denied.

Appeal Letter

Appeal Analysis

Background

From August 23, through September 15, 2017, the City of Houston (Applicant) experienced heavy rains and extreme flooding from Hurricane Harvey. In response, the George R. Brown Convention Center (Facility) was used as an emergency congregate shelter which housed more than 10,000 survivors and, according to the Applicant, received more than 280,000 donated supplies.[1] The Applicant requested Public Assistance (PA) funding for the value of donated labor and materials to offset the non-Federal share of PA funding for emergency work projects; FEMA prepared Grants Manager Project 99078 to document the Applicant’s request.[2]

On October 12, 2022, FEMA issued a Request for Information (RFI) seeking backup documentation that identified the source of all donated labor and materials. In response to the RFI, the Applicant asserted that the donated labor and materials were from the public (even items labeled “FEMA” or “Red Cross” in the Applicant’s documentation) and the donated labor was in support of congregate sheltering at the Facility. On December 27, 2023, FEMA issued another RFI requesting additional volunteer labor documentation. In its response to FEMA’s second RFI, the Applicant did not provide additional documentation.

FEMA denied the Applicant’s request for $21,317,256.87 of the total requested amount of $21,568,389.84 for donated labor and materials. However, based on the submitted documentation, FEMA validated $251,132.97 in eligible claimed costs for donated labor. However, FEMA noted the Applicant was unable to provide any additional details for the missing days and hours claimed as required to support the remaining claimed costs. Moreover, the materials costs could not be validated because the records did not demonstrate who donated the resources and some noted donations as “FEMA” or “the red cross.” Although the Applicant claimed those items nonetheless came from the public, FEMA could not validate its claim.

First Appeal

The Applicant submitted its first appeal in a letter dated June 5, 2024, stating the $21,568,389.84 total claimed costs was incorrect, and clarified that the amount in dispute was $14,380,007.00.[3] The Applicant claimed there was no reasonable way to reconcile information about actual hours worked due to documentation errors and many volunteers who signed in but did not sign out, or vice versa. Therefore, the Applicant stated it estimated the number of volunteers and volunteer hours, based on the number of login sheets and entries per page, as well as the duration of the sheltering. It then provided an estimated average cost based on the types of labor donated, including health care, childcare, food service, laundry, cleaning, and personal care. The Applicant also estimated the cost of donated materials based on interviews with intake staff and an inventory intake log from a single day. On June 13, 2024, the Texas Division of Emergency Management (Recipient) transmitted the first appeal to FEMA, expressing its support.

In a letter dated October 11, 2024, the FEMA Region 6 Regional Administrator partially granted the first appeal.[4] FEMA found that since numerous entries lacked either a time in or time out entry or the total number of hours worked per volunteer, FEMA could not verify anything more than the volunteer hours it had already validated prior to the first appeal. Therefore, FEMA found the Applicant did not demonstrate the $12,199,990.00 in donated labor was eligible. However, for donated materials FEMA found the value of the Red Cross comfort kits, logo blankets, storage boxes, and supply kits in the amount of $61,799.40 were eligible.

Second Appeal

In a letter dated December 13, 2024, the Applicant submitted a second appeal requesting $14,318,207.60 and reasserting its first appeal arguments. Specifically, the Applicant maintains it submitted sufficient documentation to support the requested donated labor and materials offset costs. The Applicant also cites to language in Office of Management and Budget regulations on donated resources stating that, “To the extent feasible, services donated to the [applicant] will be supported by the same methods used to support the allocability of regular personnel services.”[5] The Applicant claims that it is not feasible to provide the requested level of detail in its labor and materials documents so many years after the disaster. On January 14, 2025, the Recipient transmitted the second appeal to FEMA, expressing its support.

Discussion

An applicant may use the value of donated resources to offset the non-Federal share of its eligible emergency work projects provided the donated resources are from a third party, the applicant uses the resources in the performance of eligible emergency work, and the applicant tracks the resources and work performed, including a description, specific locations and hours.[6] For donated labor, applicants should provide the name of the individual, days worked, the hours worked, the location of the work, and a description of the work performed.[7] For donated supplies or materials, the applicant should provide the quantity donated, who donated, and the locations where they were used.[8]The applicant is responsible for providing documentation to support its claim as eligible.[9] Documentation should provide the “who, what, when, where, why, and how much” for each item claimed.[10]

The documentation provided by the Applicant does not track the resources and work performed, including a description, specific locations and hours to identify any additional eligible work. Additionally, many of the locations and descriptions of work that are listed in the labor summary do not appear to be associated with the performance of eligible emergency work. For example, the Applicant has provided a labor summary that documents volunteer labor conducted throughout the city of Houston and is not limited to volunteer labor associated with emergency congregate shelter at the Facility. Some of the entries include tasks performed by volunteers in their own homes. Similarly, descriptions of work performed include activities such as “playing music,” “eye exams,” and “cut hair,” which are not eligible emergency work.[11] Here, the Applicant has not demonstrated that the value of any additional donated labor is eligible.

The Applicant also provided a list of donated items with a description of the item, quantity, unit cost, total cost, and location. However, the Applicant’s list does not provide the source of the remaining donated items that were deemed ineligible on first appeal. To be eligible, FEMA requires the quantity donated, who donated the item and the location the item was used. Based on the documentation provided, FEMA cannot determine the source of the donated items now on appeal.

Finally, FEMA requires that documentation for all work should provide the “who, what, when, where, why, and how much” for each item claimed. For example, documentation to support costs claimed for an applicant’s force account labor include name, days and hours worked, and a description of the work performed.[12] FEMA’s policy related to documentation requirements to determine the value of donated labor and materials is consistent with its policy for other types of work and with federal regulations.[13] 

Conclusion

The Applicant has not provided documentation to support the claimed costs for donated labor and supplies or materials. Therefore, the appeal is denied.